He's cutting his target based on weaker than expected iPhone sales coupled with a shift in the mix of iPhone units.

"Our checks suggest continued solid iPhone 4/4S demand and mixed iPhone 5 demand," says Kidron. He's lowering the average price of an iPhone unit sold. And he's cutting his units by 1 million to 26 million for the quarter.

He's also tweaking estimates for the September quarter, assuming that Apple doesn't release a new iPhone until the end of September.